Tenders are often used where the real estate agent believes there may be a varied range of potential buyers for a property.  It encourages buyers to offer their very best price, since they don’t know what the other tender prices are.

Here you’ll find information on how the tender process works, tender strategy, deposit and settlement, and some tips and tricks.

How does it work?
In a tender, no price is set.  Interested buyers are asked to submit written offers for the property (the real estate agent will provide you with a tender document to assist you in submitting your offer).  All offers must be submitted by a set date and time (offers may include conditions).  They are all opened at once.  The seller then considers all the offers and decides which, if any, to accept.

Bidders do not get to see what the other offers are.  Unlike an auction, the seller does not have to accept the highest or indeed any offer.  They may instead choose to try and negotiate on any of the tendered offers.  The real estate agent will act as the go-between in this case.

Can you buy before the tender date?
If you are interested in a property, you may be able to put in an offer before the tender closing date (in fact, many tenders are advertised as ‘if not sold prior’).  If the seller is open to considering an early offer, they are under no obligation to accept it.

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